Private Label or Private Label is a trademark owned by a retail chain (super or hypermarket). In Ukraine and Russia, private label sales have shown stable growth over the past few years. This process has particularly accelerated since the 2014 crisis.
In July 2016, the share of private label in the ATB supermarket-discounter chain was 24.9% in the assortment list and 24% in turnover. And it continues to grow . In 2016, Retail Group (Velmart, Velyka Kishenya, VK SELECT, VK Express and the Moldovan network Green Hills Market) reported that the share of private labels was 6.2% in their turnover. Eco Market has a similar indicator – 7.5%.
All private labels are divided into 3 main price categories:
- discounters or low-price product segment;
- mid-price segment ;
- premium brands (in Ukraine they are less common than discounters, but they are the most promising in terms of profit).
In Eastern Europe, the share of private labels in the total turnover of chains is still low. Today in Ukraine private label accounts for no more than 10% of sales . In Western Europe the figure reaches 30% . The main opportunity for retailers is the development of premium private labels . Further growth of the Private Label category will take place precisely at the expense of elite private labels. At the beginning of 2016, 6% of the Ukrainian population purchased private labels once a week or more often. Already today, according to polls by Nielsen Ukraine, more than 50% of Ukrainian buyers are ready to switch to private labels. However, the assortment available from retailers is not yet ready to meet their needs .
Another feature of the Ukrainian market – private label growth in 2016 was mainly due to unproductive categories . This includes detergents, household goods, care and decorative cosmetics, and pharmacy private labels (for example, vitamins).
Local STM retailer Watsons – M.A.G.
Private label promotion strategies
- Creation of private label discounters and price dumping.
- Expanding the supermarket brand and spreading its reputation on private labels.
- Driving out competitors. the most difficult strategy, which requires the most effort, but also brings significant profits. The bottom line is to replace the product of a well-known brand in the mind of the consumer and persuade him to choose a private label. To do this, you need to create a mystified image of the product. This can be achieved through design.
If you want to create an umbrella private label or revise the design of an existing Private Label, contact KOLORO. We will develop a corporate identity that will increase sales and expand the category range.
7-Eleven Sandwich Packaging Design
Discounters differ in maximum simple packaging . Often in her designs, chains use flashy colors to draw more attention to the product. Such a technique achieves its goal, but repels some potential consumers who are ready to buy private labels, but the “gouge out” design raises their concerns. Subconsciously, they associate flashy contrasting colors and large logos with a low-quality product inside .
The fact that many manufacturers choose trash design does not mean that this is the only right decision. For example, the Private Label of the Novus network , Promo Marka, is made in the style of minimalism. She belongs to the low-price category of private labels . However, the brand managers decided to emphasis not on cheap design, but at an honest product presentation . They make the most of the viewing windows by displaying products (cereals, biscuits) and neat food illustrations (preserves, dairy products). Even a low price is not a reason to abandon an emotional message. Promo Marka has it. It is clean and fresh – a feeling that is achieved through the correct use of white and subtle details like fonts or floral illustrations.
Promo Marka, Novus – laconic private label design
Among the private labels in the mid-price category, I would like to note the design of some products of my own brand “Premia”, which belongs to the Fozzy Group (Silpo supermarkets, Le Silpo gourmet markets, Fozzy wholesale hypermarkets, convenience stores Fora and the Bumi-Market chain). For example, juices (with the image of fruits and vegetables around the entire perimeter of the package), tea, processed cheeses and children’s line “Premiya Rikі Tіkі”.
Part of the assortment of private label “Premiya”, Fozzy Group
However, there is also a minus. Quite a lot of goods are produced under the “Premiya” brand. They were launched on sale not at the same time, and, apparently, more than one agency was involved in the design. Therefore, apart from the logo, the products do not have anything in common . Strategically, this is detrimental to the brand by blurring its image in the eyes of consumers. Indeed, one of the key positive qualities of a private label is the ability to quickly find all the goods of one brand that the consumer needs. And in this a uniform packaging design style helps.
Premium brands of retail chains are a relatively new and most promising category for private labels. Packaging design is the main thing that can attract such a product to the consumer. Its task is to enchant a person. Packaging for the premium category of private labels should not be associated with negativity. Its goal is to create the impression that a complete brand is in front of the consumer. Private label Fozzy Group, Premiya Select coped with this task.
Part of the assortment of Premiya Select, Fozzy Group
Private label development: 2 main rules
- Think in advance about whether the line will expand . Choose a corporate identity that leaves room for maneuver and can be adapted to new product categories. It should be understood that a private label is a giant umbrella, under which from 200 to 400 SKUs can be combined (sometimes the number reaches 700 units). Therefore, in addition to the logo, the design should be based on a common denominator ,.
- To clearly understand in which price segment the private label will be presented and build on it. Private labels of premium categories are gaining popularity . When developing a design for them, it is important to create a bright emotional brand image that will tell about the quality of the product.
Have you decided on the answers to the questions and are you ready to start the project? Contact our managers right now, they will answer all questions and send you a rough estimate .
Identity for Private Label of Pressbyrån supermarket
Private label design that targets the target: checklist
1. Product comes first
For private labels, the most important characteristics are the price and quality of the product. Therefore, when creating a Private Label package design, it is important to focus on the product itself. Here will help concise description , transparent inserts or viewing windows (if the technical characteristics of the packaging allow this technology to be applied), composition which is indicated in capital letters on the front of the package. The logo fades into the background, it can be very small and invisible. This will be a plus for the product.
An example is the design of the private label of the retailer EasyFood. White background, bright pattern , which symbolically demonstrates the contents of cans and packs, as well as a noticeable indication of the category to which the product belongs – 3 secrets of private label success.
EASYFOOD is a perfect example of a simple private label design that does not repel
Another example is the private label of the Garant network. Here, the focus is on text and recognizable fonts . This approach has two advantages at once. Firstly, the whole line looks very organic , the consumer can easily find the brand’s products in different departments of the supermarket. Secondly, , large letters themselves tell about the contents of the packs , which speeds up the shopping process. People will be grateful for the time saved. Also, subconsciously, such a font is associated with openness and gives more credibility to the product.
Private label of the Garant chain – the name of the category is highlighted, the logo corresponds to the size of the eco label
2. A storm of emotions
Many consumers in Ukraine and Russia associate private labels with cheapness and poor quality of goods. However, this negativity is very easy to deal with with good design. The following two examples are excellent proof of this.
The first is a cookie packaging design for Fortnum & Mason. Thoughtfully illustrated cardboard cylindrical chest challenges the competitor. Language will not dare to call this private label “cheap” or low-quality.
Design of private label cookies of the Fortnum & Mason chain
The second is the umbrella private label ICA Gott liv. It is made up of vibrant geometric patterns that highlight the essence of each product. The color scheme is impressively different from most products. This makes the private label visible and recognizable. And the brightness sets you in a positive mood .
Private label design ICA Gott liv
3. Not what it seems
Above, we have already written that the most profitable for a retailer is the creation of elite products under a private label. To do this, you need to develop a design private label, which will not appear in the product own brand . Examples are the private labels of the Tesco retailer or the Salde Plata seafood line of the Aldi Supermarkets chain.
Tesco finest chocolate, snack and cookie design
Packaging design for private label Sal De Plata
Private label design: summary
Having learned about the statistics of private label consumption in Ukraine and the world, having seen examples of Private Label design, we can say that this area has great prospects for development. We hope that Ukrainian retailers will follow the example of their European colleagues and continue to expand their private label lines with quality products with an attractive design. And KOLORO marketers and designers are always ready to help!
You can order the development of a private label in the KOLORO branding agency. We will create for you a brand with a unified corporate identity that will become a leader among consumers .